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The highest tax in Canada is in Nova Scotia at 54.00% on income above roughly $258,000, and in Newfoundland and Labrador it climbs to 54.80% once taxable income passes about $1.14 million. Ontario’s top combined rate for 2026 is 53.53%. Those are marginal rates, meaning they apply only to the slice of income above the line.
Which province has the highest tax rate in Canada?
The federal government charges 33% on taxable income above $258,482. Each province then adds its own top rate. Add the two together and you get the table below. We worked each row out with our own income tax engine at $500,000 of income, except where a higher step is noted.
| Province | Top combined rate, 2026 |
|---|---|
| Nova Scotia | 54.00% |
| Newfoundland and Labrador | 53.80% at $500,000, 54.80% above about $1,141,275 |
| Ontario | 53.53% |
| British Columbia | 53.50% |
| New Brunswick | 52.50% |
| Manitoba | 50.40% |
| Alberta | 48.00% |
| Saskatchewan | 47.50% |
| Nunavut | 44.50% |
Quebec comes out at about 53.3% in our engine. We took Quebec’s figures from a secondary source because the official page wouldn’t load for our research tool, so treat that one as approximate. Prince Edward Island isn’t in the table because one of its 2026 bracket limits is still disputed between sources.
Why does Ontario’s number look odd?
Ontario’s top bracket is 13.16%, but you’ll never see 13.16% added to 33% and get 53.53%. That would be 46.16%.
The gap is the Ontario surtax. Once the province’s basic tax passes a set amount ($5,818 in 2026), the province adds 20% of the excess. Above $7,446 it adds another 36%. At the top, 13.16% becomes about 20.53% after both surtaxes, and 20.53% plus 33% gives the 53.53%. It’s a quirk of the form, and it means the rate you see quoted is not a rate you can find printed on any single line.
Does the top rate apply to all your income?
No, and this is where the headline number misleads people. Tax works in steps. Someone on $500,000 in Ontario doesn’t pay 53.53% on $500,000. Our engine puts their income tax at $221,152.87 (before CPP and EI), which is an average rate of 44.2%. Only the dollars above roughly $258,000 get the top rate.
Lower down the scale, the picture changes quickly. On $100,000 in Ontario the engine shows $20,024.35 in tax, an average of 20.0%. On $200,000 it shows $62,952.21, or 31.5%. So doubling the pay took the average up by more than eleven points.
You can try your own figures in the income tax calculator. To see the tax on your next dollar, use the marginal tax rate calculator, though it shows an odd spike near $200,000 in Ontario because of the health premium step, so don’t read that number as a real rate.
What about dividends and capital gains?
They have their own, lower ceilings. The 2026 capital gains inclusion rate is 50%, though we inferred that from the cancellation of the proposed increase rather than reading it on a page, so check before you rely on it. With half of a gain taxed, the top rate on a gain is roughly half the top rate on wages.
Dividends get a gross-up and a credit, and the result depends on whether they’re eligible. If you hold shares outside a registered plan, the dividend tax calculator and the capital gains tax calculator do the sums for your province.
Mistakes when reading these rates
The first is treating a marginal rate as your rate. It’s what the next dollar costs. It’s useful for decisions like an RRSP contribution, and misleading for judging your whole bill.
The second is forgetting payroll deductions. CPP and EI sit on top of income tax for employees, and the self-employed pay both halves of CPP. The take-home pay calculator includes them.
The third is quoting a rate from a different year. These are 2026 figures, and provinces change their brackets. We couldn’t confirm anything about 2027.
Where do these numbers come from?
The federal rates and the provincial brackets come from the CRA’s 2026 payroll tables and the provincial government pages listed in our data files, which we rechecked on 29 September 2026. The combined rates are our own calculation. This site has no connection with the CRA or any government.
Frequently asked questions
What is the highest tax rate in Canada?
In our 2026 figures it is 54.00% in Nova Scotia above about $258,000, and 54.80% in Newfoundland and Labrador above about $1.14 million.
What is the top tax rate in Ontario?
53.53% combined, made of the 33% federal rate and Ontario's top rate with its surtax.
Do I pay the top rate on all my income?
No. Only the part above the top bracket is taxed at that rate. Someone earning $500,000 in Ontario has an average rate of about 44.2%.
Which provinces have the lowest top rates?
Nunavut at 44.50% and Saskatchewan at 47.50% in our figures. Alberta comes next at 48.00%.
Are these rates the same next year?
Not necessarily. They are 2026 rates and we couldn't confirm any 2027 changes.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.